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Virgin Blue today launched the name of its new long haul
international airline, V Australia, which it plans will take to the
skies by the end of next year.

The transpacific airline will be profitable within two years,
the carrier's chief Brett Godfrey says.

Yesterday Virgin received Australian regulatory approval from
the International Air Services Commission (IASC) to fly ten
services a week to the US, as long as the airline hits the skies
before November 30 next year.

The airline now awaits approval from US regulators.

Asked by reporters when the new airline would be able to turn a
profit, Mr Godfrey said it would be trading in the black two years
after lift off.

"We expect to be profitable within the second year of
operations," he said.

"In the first year we're going to incur just at our own cost
base in Virgin Blue, before we even start flying, somewhere around
$25 million.

"So those costs will certainly be exacerbated once the airline
is up and running ... and we expect the first few months to be
fairly heavy."

"But Australia, rest assured, you'll get some discounts around
that period."

Mr Godfrey said he expected the outlay for V Australia to come
in at around $70 million, "over and above lines of credit that are
needed to secure the aeroplanes".

Virgin has spent about $2.2 billion to purchase six Boeing
777-300ER for V Australia, and possibly $2.6 billion if the airline
takes out an option on a seventh.

Mr Godfrey said that, with ten flights a week, V Australia would
take about 12 per cent market share of the Australia to US west
coast market.
V Australia will compete with Qantas and US airlines United and
Hawaiian Airlines on the lucrative direct Australia-US route.

"By default, if we end up with ten frequencies a week we'll end
up with something around 12 per cent," he said.

"It's not dramatic. We're not looking to come in and really
stampede the market because we've got limited capacity in the first
instance."

Mr Godfrey declined to outline specific routes V Australia would
fly, or the prices the airline is likely to charge, saying more
would be revealed at its results briefing in August.

Mr Godfrey also said it was unclear how long it would take to
get US regulatory approval for the service.

"The Australian Government through the IASC, which is our
bilateral negotiating team, have said that they believe that (ten
flights) is an appropriate number," he said.

"Now we have to wait for the US to come back, and agree whether
that's right or not. The timeline on that could be weeks or months.
We just don't know."

However, Mr Godfrey said V Australia would be launched in the
fourth quarter of 2008.

"This is the first time in decades Australia has a start-up long
haul international airline and we look forward to bringing
competitive air fares and a new style of service to the
trans-Pacific market," he said.

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